YFI Price Exceeds Bitcoin Price at $15K But Theres a Catch – Cointelegraph

Yearn.finances native governance token YFI eclipsed Bitcoin (BTC) price as it soared to $16,600 on Aug. 20. The spiked to a new all-time high took place on Binance and was fueled by the growing demand for Decentralized Finance (DeFi) products and tokens associated with the sector.

It is important to note that there are a few cryptocurrencies which are currently priced even higher than YFI as units, but many of them have insignificant trading volume.

Meanwhile, a quick glance at the YFI order book on Binance shows significant trading volumes and demand for the token.

The sentiment around YFIs vertical rally since early August remains mixed. Some believe YFI is primed for a pullback. Others foresee more growth potential over the longer term.

The 4-hour chart of yearn.finance (YFI). Source: TradingView.com

Yearn.finance is a DeFi protocol that launched in July with no premine in a decentralized setting by developer Andre Cronje. It is the first protocol on Ethereum that claims to give token holders all the power to govern the network.

Blockchain analytics firm IntoTheBlock said`:

Just a month ago, the yearn.finance token was trading around the $1000 mark. #YFI is up more than 10x in one month, climbing to $10,551.25 yEarn Finance is the first project on Ethereum, whose governance is entirely in the hands of token holders.

Cryptocurrency researcher Hasu explains yearn.finance as a platform that allows users to execute various investment strategies. He says:

If you're not familiar with Yearn, you can think of it as a smart bank account that automatically allocates your assets to different low-risk investment strategies that execute on the Ethereum blockchain.

The price of YFI, the governance token of the protocol, increased naturally as the total value locked in yearn.finance surged. According to data from Defipulse, more than $670 million worth of capital is locked in yearn.finance.

Compared to other tokens, the price of YFI is high due to its unique monetary supply. Its supply is capped at 30,000, which is significantly lower than most digital assets.

While the price of YFI has surpassed $16,000, its market capitalization remains below $400 million. By market cap, it is the 45th biggest cryptocurrency in the global market.

As such, crypto startup investor Ian Lee explained that YFI surpassing Bitcoin is more of a psychological event than anything else. He explained:

YFI flipping BTC price is arbitrary & more psychologically than practically important. What is important is what yearn.finance is doing & Andre Cronje is building in DeFi.

If yearn.finance reaches a similar market cap of other top DeFi protocols, such as Aave and Maker, its price would be at around $30,000 due to its small supply cap. In other words, comparing the price of YFI to Bitcoin makes little sense since the latter has a market cap that is 568 times bigger than Yearn.

Some investors in the DeFi space say that YFI has the potential to grow as its supply has been nearly fully minted. Out of 30,000 YFI, 29,962 are circulating, based on data from CoinMarketCap.

Meanwhile, Yearn.finance also unveiled a new product called yinsure.finance to target the DeFi insurance market. Kang previously said that the sector has the potential to become a new billion-dollar market.

Andrew Kang, an investor at Mechanism Capital, said:

1 YFI will be more difficult to attain than owning 1 BTC. It's Math.

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YFI Price Exceeds Bitcoin Price at $15K But Theres a Catch - Cointelegraph

Bitcoin Struggles to Surpass $12.5K: Is a Correction in the Cards for BTC? – Finance Magnates

Now that Bitcoin has been dancing between roughly $11,000 and $12,000 for the better part of a month, investors are wondering whats going to come next.

2020 has been a crazy year in the financial world: the outbreak of COVID-19 has led to unprecedented economic chaos, major changes in monetary policy, and a drastic public reconsideration of what value really means.

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Therefore, it seems that Bitcoinwhich has been described as inherently non-inflationarycould be gaining a foothold as a so-called safe-haven asset, similar to gold. Therefore, this dance between $11k and $12k could be the beginning of a larger trajectory to much higher prices.

However, others believe that Bitcoin is overbought, and imminently due for a market correction. Whats in the cards for BTC?

For some, the fact that Bitcoin has managed to hold a level over $11,000 for several weeks is a sign of a larger bull run to come: some analysts have targeted $25k, $50k, or even $100k within the next two years.

What could be driving the price up?

Investment firm Grayscale recently issued a report saying that Bitcoins ability to sustain higher price levels is demonstrative of an increasing number of long-term holders in the space.

In other words, Grayscale believes that there is a higher ratio of people who are buying and holding Bitcoin to day traders and short-term speculators.

In addition, the reported noted a historically low level of BTC on exchange wallets, which could indicate that fewer people are making moves to trade or sell their Bitcoins. However, the report also found that daily active addresses are at their highest level since 2017s all-time highs, signaling higher-than-usage of Bitcoin

Grayscale believes that this kind of market structure is a positive thing for Bitcoins future. In fact, the report drew a parallel between Bitcoins current market makeup and the Bitcoin market of early 2016, just before [Bitcoin] began its historic bull run.

Therefore, Grayscale has made a prediction that the demand for Bitcoin will continue to growand significantly.

According to Grayscale, one of the largest forces at play is the influence of loose monetary policy that has influenced markets over the last half century, as well as is the ongoing influence of stimulus efforts from the United States Federal Reserve, as well as other financial institutions from around the globe.

Loose monetary policies resulted in money being funneled into financial assets instead of the general economy or main street as intended, increasing the disconnect between the equity market and the economy, the report said. As a result, the United States ratio of debt to GDP has nearly doubled since 2008.

Therefore, Grayscalealong with many others in the crypto spaceseem to believe that Bitcoin is increasingly seen as a sort of antidote to inflation: Because of Bitcoins unique qualities such as its verifiable scarcity and a supply that cant be controlled by a central authority we believe it can be leveraged as a store of value and as a way to escape this great monetary inflation, the report says.

After all, there can only ever be a maximum of 21 million Bitcoins in circulation at any timemany of which have been permanently lost, and many of which have yet to be mined.

However, not everyone believes that Bitcoin is such a strong hedge against inflation.

For example, during a presentation in May, finance giant Goldman Sachs said in a presentation that Bitcoin does not show evidence of hedging against inflation.

Specifically, Goldman said that although Bitcoin itself may be a scarce resource, cryptocurrencies as a whole are not a scarce resource: that there are several thousand cryptocurrencies in existence, and more are being created all the time.

Goldman also pointed out that several of the largest cryptocurrencies by market cap were created as forks from the Bitcoin blockchain, and are therefore very similar to Bitcoin: specifically, Bitcoin Cash (BCH) and Bitcoin SV (BSV).

Goldman also argued that Bitcoin is a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it, and that therefore, Bitcoin is not a suitable investment.

Additionally, the firm said that because infrastructure of cryptocurrency is still relatively young, it may be susceptible to hacking or other technical issues that result in financial loss.

Additionally, while Bitcoins performance has been so positive over the last several months, there are some within the space who believe that a price pullback is imminent.

For example, CoinDesk reported this week that a short-lived jump up to $12,400 on Monday of this week represented a failed breakout that could be a sign of bullish exhaustion. In other words, the failure to maintain levels above $12,000 could represent a combination of slowing price gains and weakened buying pressure.

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Singapore-based digital economy trading firm QCP Capital also told its Telegram subscribers this week that Mondays breakout of $12,000 was almost entirely short-squeeze driven.

A short squeeze is what happens when the price of an asset suddenly jumps higher, thereby forcing traders who shorted the asset, or bet that its price would fall, to buy it in order to prevent greater losses. This kind of activity can artificially prop up the price of an asset for a short time.

Therefore, QCP believes that Bitcoins resultant failure [to breakout] just ahead of larger offers [sell orders] at $12,500 has solidified the price range of $12,000-$12,500 as a key resistance area for an extended period.

QCP also noted that while certain other market indicators could appear bullish at first, its possible that the market may be overbought at the moment.

For example, open interest in bitcoin futures on major exchanges rose to record highs of roughly $6 billion on Monday, an increase of 200% from the March low of $1.93 billion, according to data source Skew; additionally, Skew reported on Tuesday that Bitcoin options total open interest [were] sitting at $2bln, up 6x since the start of the year.

CoinDesk reported that its precisely this kind of bloated bullish positioning that can lead to deeper price pullbacks, particularly in cases where its accompanied by overbought readings on technical indicators, as it seems to be now.

However, QCP Capital also said that much depends on the continued movements of the dollar, which hit its lowest point in two years earlier this year.

No doubt the US has a capital leakage problem, evident from all the USD selling we see everyday during US hours, QCP said. We therefore look again to the late EU/early US sessions especially into August month-end for clues to the next big move, and whether or not a short squeeze is nigh.

QCP also noted that there could be quite a bit more movement in the USD throughout the rest of the year due to upcoming political events in the United States: the prospective catalysts are there for a large squeeze, QCP said, including [possible] disappointment over failed fiscal stimulus, democratic/republican conventions, and more.

In the short- and medium-term, therefore, the $12,500 resistance level may not be a realistic goal.

Instead, QCP says that we see this $11.6-11.7k level as the new key short-term pivot to watch, and that its possible to see a retest of the $11,000 level.

Only a break and close under $10.5k will make us change our medium-term bullish bias, the firm said. $10,500 was the highest that Bitcoin reached earlier this year before the COVID-19 economic crisis caused crypto markets to crash in March.

However, while a retest of the $10,500 level is certainly possibleand may even be necessary to fortify Bitcoins price floor in the futureit seems as though BTC may be able to hold steady over $10,000 for the foreseeable future.

It may be too soon to speakafter all, CryptoSlate pointed out that so far, this hold past $10k is only the 4th-longest time that BTC has managed to stay above the $10,000 mark.

Still, though, researchers at Bloomberg said earlier this week that Bitcoin will only lose its value-building momentum if something unexpected stops it.

Something unexpected needs to happen for Bitcoins price to stop doing what its been doing for most of the past decade: appreciating, wrote senior strategist Mike Mcglone on Twitter. Demand and adoption metrics remain favorable vs. the crypto assets unique attribute of fixed supply.

What are your thoughts on Bitcoins next moves? Let us know in the comments below.

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Bitcoin Struggles to Surpass $12.5K: Is a Correction in the Cards for BTC? - Finance Magnates

Bitcoin Has Lost Its Way: Heres How to Return to Cryptos Subversive Roots – CoinDesk – CoinDesk

Rachel-Rose OLeary is a cryptocurrency writer and trainee C++ developer at PolyTech. Currently a contributor to CoinDesk and the Defiant newsletter, she has written about cryptocurrency since 2015. She holds an MA in digital art and philosophy.

These days I spend most of my time tweaking the code of a bitcoin wallet that runs in Terminal. Based on Libbitcoin, its built to work over Nym Technologies anonymizing mixnet. I call it the Dark Renaissance wallet.

Its mostly a learning exercise to hone my C++ skills, but the Dark Renaissance wallet is a harbinger for what is to come.

Working with a small, focused and ideological team, my comrades at PolyTech are upending some of the key assumptions on which the crypto industry has been built, and are plotting an all-out privacy offensive.

Our mission the Dark Renaissance is strategic and philosophical. At a personal level, it relates to a lifelong obsession with the philosophy of technology, and an intense awareness of the power of software.

It represents a desire to reconnect with bitcoins crypto-anarchist roots and fend off the forces of surveillance that creep into every aspect of our lives in 2020.

But first, it requires an understanding of the distant past.

Code as magic

Like the ancient Irish poets, the fil, programmers have the ability to alter reality with an utterance. Code is an incantation, an act of summoning ideas and inclinations into material reality. It is a conduit between the sphere of ideation and that of politics and sociality.

But technology isnt merely the product of ideas it actively shapes belief systems, reconfiguring the world in which it is applied.

Programmers know this: When a users behavior is influenced by code, its called opinionated software. When a user is manipulated for corporate interests, it is known as a dark pattern.

Software also has unintended consequences. Released into the wild, code propagates ideology in unpredictable and chaotic ways. Inevitably, it backfires, and innovation flows through human society, irrespective of, and indifferent to, political difference.

To what extent technology is informed by and produces belief systems has haunted me throughout my adult life.

It has caused me nightmares: dark conclusions on the nature of technology, prophecies of machine takeover and terrifying visions of the future of war.

It has also given me dreams. I believe it is within humanitys power to reshape the narrative by which technology is formed. In doing so, it becomes possible to take back the reins of runaway technological innovation and re-orientate human destiny.

Crypto is at the front line of this struggle.

Crypto philosophy

I came to crypto through encryption. I saw hash functions as a kind of abstract poetry that spoke of the secrecy of nature and the unknown.

Crypto was immersed in a romantic glow. In Ethereums early days, I believed I was witnessing the emergence of Skynet. It was the promise of Turing Complete, general computation and if artificial intelligence was going to emerge anywhere, it would be there, I believed at the time.

It was my doomer phase, and Ethereum was a source of dark fascination. Inspired by the Ethereum yellow paper, I wrote my masters thesis in 2016 on what I felt was a sadomasochistic dynamic between natural language and code. It included an erotic poem featuring a kind of vampire DAO (far before I had familiarized myself with the unicorns and rainbows that better represent the Ethereum community).

But while my approach was unconventional, the idea dates back to a problem as old as philosophy itself. To borrow a metaphor from computers, human experience consists of abstractions: mere interfaces that we interact with. Base reality occurs on a lower level, corresponding to hardware and raw machine code.

This hierarchization of reality of partitioning nature into the more and less real occurs across philosophy in different guises and names. For some philosophers, such a partition gets us no further in understanding the things-in-themselves. Humans are encased by a sphere of representation, wholly cut off from an inaccessible and inhuman outside.

At the time, I believed the reality hierarchy had a linguistic equivalent. At the bottom were operational languages such as computer programming. At the top were descriptive, natural languages.

With this philosophical backdrop, code acquires a profound metaphysical weight. It became a way to transmute the lowest level of reality into human experience.

The DAO hack was the first crack in this worldview.

Inhuman intelligence

Implicitly, I maintained at the time that natural language was somehow inferior to the perfect objectivity of code.

Not only that, but I believed the behavior of technology within capitalism its tendency toward monopolization, value-extraction and surveillance was technologys true nature revealing itself.

Martin Heidegger a philosopher known for supporting the Nazi party and for transforming Western philosophy calls this tendency Gestell, or enframing.

According to Heidegger, technology is a process of dismantling, quantifying and repackaging for export. In modernity, it has captured humanity, reducing people and everything else into a resource, a standing reserve to be exploited by the technological regime.

The DAO episode exposed many myths about blockchain, but this one stands out: Despite claims to the contrary, crypto contains an inextricably human element.

An equally controversial philosopher called Nick Land takes this process and gives it an agency.

According to Land, technology exposes an inhuman intelligence optimizing itself at the expense of the human. Stimulated by finance and a strange, contorting temporality, this inhuman intelligence is climbing its way up the reality hierarchy, threatening to replace the human as the worlds top predator.

It might sound like science fiction but crypto is full of this kind of rhetoric. Early efforts toward smart contracts promise nothing short of optimizing humans out of the equation. The blockchain is described as pure, trustless and incorruptible, turning all that it touches into glacial, inalterable code.

Ethereums infamous experiment in corporate governance, The DAO, echoed this language.

As Ethereum Classic fans will no doubt remember, The DAO was a high-profile fundraising campaign for a decentralized incubator. Its marketing spoke of the steadfast iron will of unstoppable code a phrase whose irony is hard to forget.

Due to a vulnerability discovered in Solidity smart contracts not long after its launch, The DAO was subject to a re-entrancy attack, in which a hacker exploited a function within the code to drain 3.6 million ether out of it.

Following a heated discussion that resulted in the birth of a new cryptocurrency, ethereum classic (ETC), Ethereum developers implemented a controversial upgrade to refund DAO investors.

The DAO episode exposed many myths about blockchain, but this one stands out: Despite claims to the contrary, crypto contains an inextricably human element.

Not quite Skynet

I spent the subsequent years following the ebb and flow of Ethereum software development as a reporter for CoinDesk.

For two years I attended every single Ethereum core developer call. I tracked decision-making on the platform like a jealous lover, refreshing Twitter handles, expanding sprawling GitHub discussions, quietly watching chat groups.

During this time, Ethereum faced the fallout of its DAO refund and dealt with the challenge of informal, decentralized governance. This challenge was intensified by a few simple facts: Ethereum has a leadership that is ideologically opposed to authority, and a vision that is inclusive to the point of being meandering.

Criticisms aside, Ethereum was in uncharted territory. And despite the odds, the platform managed to keep its course, even with pressure from monetary interest pulling it from each side.

Over time, I understood the mistakes I had made. Ethereum is not Skynet, and code has much more in common with natural languages than the raw mechanics of primary nature. I learned that sometimes, developers actually trade efficiency for readability; favoring clear, modular code over code which is fast.

The general effort toward compliance was not only enabling certain forms of oppression but at times actively supporting it.

I also learned power exists on all decentralized networks, but it is typically nameless and therefore unaccountable. Over time, power relations solidify. Networks become institutionalized and the rift between users and developers deepens.

Software, I decided, is a social good, like water and clean air. To maintain the balance of power, coders must elevate those around them. They must discourage passive user-ship, inspire users to become active network participants and train the next generation of coders to replace them.

Democratic modernity

Armed with a newly found focus, I left the Ethereum beat to join the Rojava revolution in North Syria.

Inspired by the writings of Kurdish ideologue Abdullah Ocalan, the Rojava revolution sprang up during the Syrian Civil War. Its supporters maintain that the nation-state is an abstraction badly suited to the Middle East. In its place, Rojava is pioneering new forms of decentralized social organization.

But it is not merely a social organization that binds Rojava together. Rather, Rojava is governed by a collective idea: the concept of democratic modernity.

In his five-book manifesto written from Turkish prison island mral, Ocalan essentially agrees with Heideggers Gestell there is a reductive, exploitative process at work within modernity.

But Ocalan does not identify this process with technology. According to him, it is the logic of capitalist civilization itself.

The task of democratic modernity is to decouple technology from globalization. In its place, new modernities can be built, based on a plurality of logics not merely Western-style reductionism that has come to dominate the world.

In Rojava, learning is paramount. People are encouraged to develop xwe zann, or self-knowledge, inspired by the Ancient Greek maxim know thyself. This is a project of remembering, of resurfacing histories worn away by globalization.

Here, I spent my time establishing technical academies. Inspired by the scientific centers of the ancient world, like Platos Academy and the House of Baghdad, our goal was to train a new generation of philosophical programmers.

But my time in Rojava was cut short.

During the nine months I spent there, the risk of a Turkish invasion weighed heavily. It cast a dark shadow across all of our work, like a storm cloud looming in the distance.

Finally, the storm came, and the sky rained bullets and bombs. Disguised as a man, I was among the last foreigners to cross the border to safety before the death count started to rise.

Bad trip

I found myself at the Devcon5 Ethereum conference in Osaka, Japan, one week after leaving Syria.

With friends on the front line, I found it hard to look people in the eye. Ethereums unicorn-punk aesthetic set against the backdrop of war was hard to stomach.

Sleeplessly refreshing the Syrian Civil War subreddit and Syria Live Map on my phone, I watched the war play out in total horror.

Airstrikes, bombings, body counts. On stage, well-meaning developers called for diversity and social justice, innocent to, or oblivious of, the blanket of physical safety that surrounded them.

By suppressing its crypto-anarchist roots and whitewashing its aims to appeal to bankers, crypto has cut itself off from its source of power.

It was overpriced and sparsely attended. At a panel on Ethereum-based mixers an audience member warned that facilitating bad guys through privacy-tech could alienate the average user a statement that was met with broad approval.

Maybe it was my state of mind, but it felt like the dissonance between cryptocurrencys stated aims and its material reality was reaching a fever pitch. The general effort toward compliance was not only enabling certain forms of oppression but at times actively supporting it.

At that moment, I decided that anonymity is where all philosophy of technology collides. In technical terms, it is synonymous with freedom. Practically, it can mean life or death.

The Dark Renaissance

Since then, I have set about orchestrating the Dark Renaissance.

The Dark Renaissance is a revolution within cryptocurrency. It is a rallying cry to all who still believe in cryptos true potential. It calls for a rebirth back to bitcoins original principles: to be autonomous, censorship-resistant and dark-by-design.

While crypto-anarchist in origin, bitcoin has lost its way. Rather than empowering black markets, it has allied with state and corporate interests traded its radical potential for mainstream adoption.

But by suppressing its crypto-anarchist roots and whitewashing its aims to appeal to bankers, crypto has cut itself off from its source of power. The Dark Renaissance seeks to resurface that power, to allow the truly disruptive potential of cryptocurrency to realize itself.

That truly disruptive potential lies in cryptocurrencys ability to extend the space of illegality outward: to increase the remit and power of unauthorized black market activity and strip resources away from the nation-state.

Our methods are part educational, part software production. We are setting up the PolyTech Academy, where technical skills are taught in tandem with a philosophy curriculum.

Through education, we want to elevate the culture of the cryptocurrency space, to create a community of active network participants and to inspire a new generation of programmers to succeed us.

In our code, we build tools to practically enforce our ideology. Advocating autonomy, anonymity and censorship-resistance, we will lead with the launch of several financial products, and iterate into a full-fledged dark financial system.

These tools will enable us to create a new economic paradigm. We are building financial networks to disintermediate local economies away from the state and large banks, and to usher in a more democratic alternative.

Rather than controlling people through mechanism design as much crypto-economics often intends to do, we are instead seeking to inspire people to create a vision of technology that empowers people from within.

We are in the midst of a turning point. Technologists today are faced with a choice: Either passively advance the interests of a system fated for destruction or undertake a psychic reversal.

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Bitcoin Has Lost Its Way: Heres How to Return to Cryptos Subversive Roots - CoinDesk - CoinDesk

Bitcoins Bull Run Is Slowing Pullback Now Expected – CoinDesk – CoinDesk

Bitcoin (BTC) could be set for an imminent retracement as the uptrend that had its origins in Marchs Black Thursday crash now looks to be running out of steam.

Singapore-based QCP Capital warned its Telegram subscribers Wednesday that bitcoin was showing signs of lethargy as it struggled to capture any new highs. Bitcoin fell below the key $12,000 milestone on Tuesday, pouring cold water on hopes earlier this week for a major bullish breakout.

Bitcoin jumped above $12,400 on Monday, confirming an ascending triangle breakout and signaling a continuation of the rally from the July lows of sub-$9,000.

But the breakout failed to invite stronger buying pressure and prices fell below $12,000 on Tuesday, invalidating the bullish setup. Chart analysts consider a failed breakout as a sign of bullish exhaustion a slowing of price gains usually coupled with weakening buying pressure.

Mondays breakout of $12,000 was almost entirely short-squeeze driven, and the resultant failure just ahead of larger offers [sell orders] at $12,500 has solidified the price range of $12,000-$12,500 as a key resistance area for an extended period, QCP Capital said.

Bitcoin may have a tough time establishing a foothold above $12,500 in the near term, as bullish positioning in the market is starting to look overstretched, QCP Capital said.

Open interest in bitcoin futures on major exchanges rose to record highs of just under $6 billion on Monday, up 200% from the March low of $1.93 billion, according to data source Skew.

Such bloated bullish positioning often leads to deeper price pullbacks more so, in cases where its accompanied by overbought readings on technical indicators. That seems to be the case as the weekly chart relative strength index has crossed above 70, a sign the rally may be overdone.

Chris Thomas, head of digital assets at Swissquote Bank, also thinks the rally in both BTC and DeFi-related coins has gone too far. Its natural that we are seeing profit-taking and weak buying at higher levels, Thomas said in a LinkedIn chat.

Bitcoin is trading near $11,800 at press time, representing a 3.4% drop on a 24-hour basis, according to CoinDesks Bitcoin Price Index. The cryptocurrency is feeling the pull of gravity after failing to keep gains above $12,000 for the second time in three weeks and may suffer a bigger drop if support near $11,600 is breached.

On the short-term charts, we see $11,600-$11,700 level as the new key short-term pivot to watch, failing which we will likely get our anticipated retest of $11,000, QCP Capital noted. That said, the broader outlook will remain bullish, as long as prices are held above the former resistance-turned-support of $10,500 originally the February high.

A sell-off below that key support looks unlikely as inflation expectations in the U.S. are rising as rumors abound that the Federal Reserve may soon signal tolerance for higher inflation meaning the central bank would keep interest rates low even if inflation rises above 2% target.

Its probably no coincidence that bitcoins correlation with gold the classic inflation hedge has started to strengthen in recent weeks.

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Bitcoins Bull Run Is Slowing Pullback Now Expected - CoinDesk - CoinDesk

Bitcoin Ransomware and Remote Working: What the Future Holds – Cointelegraph

The new work-from-home culture is gaining more traction than ever before as businesses, government departments and schools try to remain afloat while flattening the pandemic curve. This migration to remote working is a double-edged sword that creates a fertile land for cybercriminals to thrive on. There is no way that cyberattacks can be eliminated completely. The best that companies can do is minimize the frequency of the threats.

Cybercriminals use malicious software code to block people or organizations from accessing their computer systems until a ransom has been paid. Cryptocurrencies such as Bitcoin (BTC) have made it easy for these nefarious actors to receive payment without exposing their identities.

The United States cybercrime arm of the Department of Homeland Security, in conjunction with the United Kingdoms National Cybersecurity Centre has already issued alert warnings about an increase in phishing scams that can lead to installing malware on computer systems. The joint alert was issued as the number of cyberattacks against remote workers increased.

Hackers are targeting individuals and all kinds of establishments. In June, the University of California at San Francisco was forced to fork out $1.14 million in Bitcoin after suffering a ransomware attack. In May, hackers successfully attacked celebrity lawyers Grubman Shire Meiselas & Sacks. The criminals threatened to expose one terabyte of data of celebrities private data unless a ransom was paid in Bitcoin. Additionally, the City of Johannesburg, South Africas financial capital, was targeted in a Bitcoin ransomware attack in October 2019.

Cryptocurrencies, due to their anonymity, are becoming popular with cybercriminals. Hackers receive the ransom payment in privacy coins or major cryptocurrencies such as Bitcoin. The digital assets are then cleaned by being passed through mixing services.

As companies allow their employees to work from home, they have to realize that their data and secrets are at stake. While remote employees are the targets, it is the companies that suffer at the end of the day. It goes without saying that prevention is better than a cure. Companies need to invest in teaching their employees how to safeguard their computers or systems.

According to cybersecurity firm Sophos, about 73% of ransomware attacks result in data being encrypted. For a ransomware attack to be successful, it goes through three stages:

Data encryption.

Getting payment.

Data decryption.

There are several ways in which ransomware begins its process. It could be a simple phishing email or hackers could exploit vulnerabilities in network systems. Firewalls should be used to block ransomware. Some companies may think that implementing a firewall is expensive, but the clean-up bill is much higher.

Employees should use strong passwords that are a mix of all types of characters found on a standard computer keyboard. The passwords should also be constantly changed. There are free tools that can be used to generate strong passwords that are not easy to crack.

This is a difficult question, as it normally depends on what the company has to lose if the ransom is not paid. Hackers usually target a company if they know that there is valuable data. In most cases, it could be damaging for a companys operations and reputation if its data, or that of its clients, is leaked on the internet or sold to the highest bidder on the darknet. Nefarious actors were recently selling 160 million user records stolen from 11 companies on the dark web, asking for a combined price of just over $23,000.

The answer to this question is not clear, but logic points to paying the ransom. And cryptocurrencies will be used to facilitate these transactions.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Michael J. Garbade is the co-founder and CEO of Education Ecosystem. He is a serial tech entrepreneur who formerly worked at Amazon, General Electric, Rebate Networks, Photobucket and Unicredit Group. Garbade has experience working in the United States, Europe, Asia and South America.

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Bitcoin Ransomware and Remote Working: What the Future Holds - Cointelegraph

12 Crypto Firms Authorized to Operate License-Free in Hawaii for Two Years | Regulation – Bitcoin News

The U.S. state of Hawaii has authorized 12 cryptocurrency companies to start operating in the state without needing a money transmission license. No action will be taken against them for conducting unlicensed money transmission activities for two years.

Several cryptocurrency companies independently announced on Wednesday that they have been greenlighted to launch in the U.S. state of Hawaii. They have been admitted to the states Digital Currency Innovation Lab (DCIL), a program that allows digital currency issuers to do business in Hawaii without obtaining a state money transmitter license, the programs website reads. This regulatory sandbox is in partnership with the Hawaii Division of Financial Institutions (DFI).

The program, which runs from Aug. 19 to Dec. 31, 2022, accepted applications from cryptocurrency companies between March 17 and May 1. A total of 19 companies applied; 12 companies, including several crypto exchanges, fulfilled the conditions of the program and have been admitted. The website details:

The participating company will be given 2 years to engage in digital currency transactions. DFI has issued a no action message stating that no action will be taken against companies conducting what DFI would consider unlicensed money transmission activity, if they have been successfully admitted into the program.

The 12 companies admitted to the program are Apex Crypto, Bitflyer USA, Blockfi, Cex.io, Cloud Nalu, Coinme, Erisx, Flexa, Gemini Exchange, Novi Financial, River Financial, and Robinhood Crypto.

The DFI will monitor all cryptocurrency transactions taking place in the Digital Currency Innovation Lab. Participants will be required to provide updates, including the number and value of transactions. They are also required to provide information regarding the number of complaints received and any regulatory enforcement orders.

Participants that do not receive explicit approval to continue operations must conclude all cryptocurrency transactions when the two-year period is up. Per the participation agreement, companies must also execute on the wind-down plan and exit strategy. DFI will determine the appropriate licensing for the company to continue operations, if applicable, the website clarifies.

Hawaii previously had strict rules for crypto businesses, prompting a number of companies to exit the state. Coinbase, for example, ceased operations in Hawaii in early 2018 over requirements to hold fiat reserves.

What do you think about Hawaiis crypto program? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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12 Crypto Firms Authorized to Operate License-Free in Hawaii for Two Years | Regulation - Bitcoin News

Massive $2,000,000 Prize Pool in the Biggest Ever Promotion Launched on Bitcoin Games | Promoted – Bitcoin News

One lucky spin can propel your bet into a 5,000X multiplier, churning out huge amounts of money. Read on to find out how.

Bitcoin Games, our very own cryptocurrency gaming portal, has teamed up with the popular games provider Pragmatic Play to bring a $2 Million tournament promotion with daily and weekly prizes. Daily Drops and Wins, as the promotion is called, offers one of the largest prize pools in the world of online casinos and is said to have taken the gaming community by storm.

The promotion also allows players to win more than just once every day from a daily and weekly prize pool of $60,000.

The newly launched promotion offers players the opportunity to wager on the selected games from Pragmatic Play, and win a share of over $60,000 in prizes every week. Scoring the highest single spin win adjusted for the bet amount during the week is key to securing the top spot on the leaderboard. And thats just what youll need to snatch the biggest individual prize every week. The promotion also allows players to win more than just once every day.

Bitcoin Games has quickly risen to become one of the popular player-favorite casinos due to quick payouts and smooth online gaming experience. The casino boasts of a variety of sought after features such as provably fair games, anonymous gameplay and big jackpots in a safe and secure environment.

Daily Drops and Wins presents all players with a unique opportunity to make the best of their bets by triggering random prizes in the most surprising ways, rewarding them with big money multipliers, and win a share of the massive $2,000,000 prize pool.

Head on over to Bitcoin Games to find out more about how to participate in Daily Drops and Wins.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Massive $2,000,000 Prize Pool in the Biggest Ever Promotion Launched on Bitcoin Games | Promoted - Bitcoin News

Dust Attacks Make a Mess in Bitcoin Wallets, but There Could Be a Fix – CoinDesk – CoinDesk

When dust settles in your home, you wipe it up. But what about when unwanted dust makes its way into your bitcoin wallet? Well, cleaning it up may not be so simple.

In Bitcoin parlance, dust is the technical term given to trace amounts of bitcoin that are considered too small to send in a transaction because the transaction fee would exceed the amount sent. Typically, dust is no more than a few hundred satoshis (a microunit of measurement for bitcoin).

Because sending dust is expensive relative to the transaction size, normal bitcoin users have no reason to transact with dust. But that doesnt mean other entities, like bad actors or blockchain researchers, dont have a use for it.

Letting the dust settle

Entities conducting blockchain analytics may use dust to deanonymize users and their wallet addresses. The idea is to create enough deterministic links between the analysis firms wallets and the recipient addresses. Once these links are created, the firm can run analysis using the data it collects to trace IP addresses to the recipient wallets.

When the dust is consolidated with the users other funds, it helps with chain analytics by making it easier to cluster addresses, Sergej Kotliar, the CEO of Bitrefill, told CoinDesk. If users dont consolidate the unspent transactions (UTXOs), then they dont need to worry about their anonymity. However, most wallets automatically consolidate UTXOs when a user creates a transaction, so this can be tough to navigate around unless you are choosing which UTXOs to spend manually.

CoinDesk reached out to Chainalysis and CipherTrace to ask if they use dust in their analytics. Both companies denied using this technique, though Chainalysis Manager of Investigation Justin Maile added that dusting is more often [used] by investigators to trace illicit funds. Maile continued that exchanges may use dusting to trace stolen funds following a hack.

Dave Jevans, the CEO of blockchain analytics company CipherTrace, told CoinDesk that hackers may use dusting as a strategy for identifying individuals who can then be phished or extorted.

The threat of anonymity aside, consolidating these UTXOs would mean spending more in fees than the dust is worth. The resulting dilemma then becomes: leave the too-piddling-to-spend UTXOs to clutter the wallet or consolidate them and thus compromise privacy. (Its not uncommon for users to have their wallets dusted more than once by the same entity, leading to significant clutter. Phil Geiger, the director of marketing at Unchained Capital, for instance, told CoinDesk he has had addresses dusted repeatedly.)

Some wallets, like Samourai and Bitcoin Core, let you freeze UTXOs, which would bar them from being consolidated in a new transaction. But Kotliar emphasized that most average users will not know how to navigate this feature.

Raising dust limits?

To mitigate the impact dust has on the network, Kotliar has suggested raising the dust limit as designated by the Bitcoin Core wallet. Currently, most wallets are designed to cap transactions at 546 sats (0.00000546 BTC, or roughly 7 cents).

Blocking these would be censorship, but maybe raising the dust limit makes sense, Kotliar said, adding that his proposal is a way to raise the topic and have other people weigh in on it.

If this limit were raised, then it would be more expensive to execute a dusting attack. But, of course, this comes at the detriment of honest users spending small sums. If bitcoin were to go up in price dramatically, then the dust limit would have to be recalibrated so as to not price out smaller accounts from sending transactions.

If the destructive action is cheaper than a constructive one, then we should fix it. In Bitcoin, we dont have a way of censoring things we dont like, but we can change these defaults to make it more expensive.

Another fix, proposed some time ago by Bitcoin Core developer Peter Todd, involves wrangling dust UTXOs and spending them in a CoinJoin transaction to preserve privacy. In a back and forth on Twitter discussing Todds dust-b-gone proposal, a representative for Samourai indicated the privacy wallet is seriously considering adding such a feature in the future.

The dust piles up

Theres no guarantee that raising the dust limit would clean this problem up for good.

Im not sure that raising the dust limit would prevent this, Ergo, a pseudonymous analyst for OXT Research, told CoinDesk, though it would certainly [be] a deterrent.

Blockchain analysts, for example, may still be willing to stomach the premium to send dust if the limit is raised, especially if they have high-dollar contracts with government agencies.

Still, it may deter some bad actors from wasting block space on trivial transactions. Bitcoins blockchain keeps a record of every transaction ever executed on the network, and theres only so much space per block to accommodate new transactions; dust, then, causes unnecessary bloat on Bitcoins transaction ledger because blockspace that may have been used to accommodate legitimate, larger transactions is instead devoted to transactions worth pennies.

And the pennies (or satoshis) add up. In the most recent dusting attack to hit the Bitcoin network, for instance, Ergo has traced some 84,000 dust outputs from 146 transactions to an entity that appears to be advertising an obscure Bitcoin SV messaging application. Each transaction includes a message directing users to the application. (Kotliar noted, This does not appear to be a malicious attack.)

The apparent advertising campaign has cost the BSVers roughly 1.147 BTC, according to the most recent figures produced by Ergo, and the attackers have spent three times more on fees than the dust itself. Ergo told CoinDesk that this round of dusting began on Aug. 4 and has been fairly consistent.

Jensen mentioned that promotional dustings like this are not uncommon. At the end of 2018, for instance, 100,000 addresses were dusted as a way to advertise the now-defunct mixing service Bestmixer.

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Dust Attacks Make a Mess in Bitcoin Wallets, but There Could Be a Fix - CoinDesk - CoinDesk

China’s Bitcoin Mining Industry Impacted the Most This Year, Says Report – Bitcoin News

The researchers and analysts from Tokeninsight published its 2020 Q2 Cryptocurrency Mining Industry Report which shows the industry has grown exponentially during the last six months. The findings indicate cryptocurrency mining has expanded a great deal but Chinas bitcoin mines suffered a great impact in H1.

Tokeninsight published its 2020 Q2 Cryptocurrency Mining Industry Report and the study shows a lot has happened in the bitcoin mining industry during the first half of 2020.

The new research paper discusses a number of topics that affected the bitcoin mining industry this year and the countries that are welcoming these operations. For instance, Tokeninsight highlights that the Uzbekistan government established a national mining pool in January.

After that announcement, Quebecs Hydropower Agency of Canada allowed bitcoin miners to obtain 300MW of electricity.

In February the Ukraine government said bitcoin mining does not require government supervision and intervention. The following month, Missoula County, Montana, created new regulations for bitcoin miners.

In May, The Acting Minister of Energy of Ukraine told the public bitcoin miners might be able to draw nuclear energy. In April, the local government officials in Sichuan approved the Hydropower Consumption Demonstration Enterprises.

News.Bitcoin.com recently reported on the second-batch of consumption enterprises approved in Sichuan. In June, the Parliament of Kyrgyzstan said it plans to tax and supervise digital asset miners.

Tokeninsight said that China has been the hardest hit in 2020 as the country has seen a significant impact from a variety of reasons.

The Tokeninsight researchers mentioned that Covid-19 caused mining rig shipment delays, the bitcoin halving cut revenue in half for Chinese miners, internal disputes from mining machine manufacturers like Canaan and Bitmain, and the report also mentions mining policy changes in Sichuan.

Moreover, Tokeninsight has noticed a trend of new players entering the bitcoin mining rig manufacturing sector.

In terms of the mining machine manufacturing sector, new players are eager to enter the field, and the old overlords are also trying their best to update the technology to manufacture leading products in the market, the paper notes. In the first half of 2020, new generation mining machines including Bitmains S19 and S19 Pro, WhatsMiner M30 series, and Canaans A1146 Pro and A1166 Pro have been launched one after another.

The report further adds:

From the data published by several manufacturers, the new generation of mining machines has been greatly optimized and improved in terms of performance and power consumption.

The study says that the core competition between mining rig manufacturers is semiconductor research and development (R&D).

A number of mining rig manufacturers leverage 10-7nm chips and the Tokeninsight researchers highlight that chips will improve in the coming years.

At the current chip research and development level, Samsung and TSMC have deployed 3nm chips, and both plan to mass produce 3nm in 2022, the paper explains. Although 3nm is said to be a node approaching the physical limit, TSMC has already planned for 2nm and is conducting research and development with mass production in 2024.

Mining hardware is facing an accelerated iteration period, and the field of AI chips will become a battleground, the Tokeninsight researchers add.

In addition to the problems with Covid-19, supply chain delays, and government rules, Chinas bitcoin mining industry is feeling the pressure from the 2020 monsoon season in Asia. Excessive flooding in Sichuan during the last five days caused 20% hashrate losses for a number of Chinese bitcoin mining operations on Tuesday, August 18.

What do you think about Tokeninsights Q2 mining report? Let us know what you think in the comments below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Forget making a million with Bitcoin! I’d invest 500 a month in UK shares to get rich – Yahoo Finance UK

New virtual money concept, Gold Bitcoins

Bitcoins recent price rise may convince some investors it offers a better chance of making a million than UK shares. However, the long track record of growth from indexes such as the FTSE 100 and FTSE 250 suggests that stocks can produce impressive returns over the long run.

In fact, by investing regularly in a basket of high-quality stocks after the recent market crash, you could build a 1m portfolio. Not only could it deliver higher returns than Bitcoin, it may offer less risk than the virtual currency.

Although Bitcoin may have outperformed UK shares over recent months, in the long run the stock market provides significant growth potential. For example, indexes such as the FTSE 100 and FTSE 250 have produced annualised high single-digit gains since their inceptions. And this trend looks set to continue in the coming years.

In fact, investing in a diverse range of stocks could produce even higher returns than the market average due to the recent market crash. Many high-quality businesses are currently trading on exceptionally low valuations. In fact, significantly below their historic averages. With the stock market having always recovered from its lows, they could offer strong turnaround potential. Through buying them now while theyre priced at low levels, you could generate some impressive returns as they recover.

Even though Bitcoin may outperform UK shares in the short run, its lack of fundamentals means that investors have no way of knowing whether it offers good value for money. Therefore, its current price may already factor in its long-term growth prospects. This could mean that buying it today proves to be a relatively risky decision.

By contrast, the financial figures for many companies suggest they offer wide margins of safety at the present time. Investors can access these figures freely and without charge online. This enables them to build a diverse portfolio that offers less risk than Bitcoin. And at a time when the outlook for the economy continues to be very uncertain.

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Assuming that UK shares produce an 8% return a year, as per the FTSE 100s annual returns since its inception 36 years ago, investing 500 per month could produce a portfolio valued at over 1m within 35 years. However, since many stocks appear to be undervalued at the present time, they could produce even higher returns in the coming years.

Therefore, now could be the right time to buy a selection of them on a regular basis. They may have experienced a disappointing 2020 so far by comparison to other assets such as Bitcoin. But, when it comes to their risk/reward appeal, they appear to be significantly more attractive than the virtual currency.

The post Forget making a million with Bitcoin! Id invest 500 a month in UK shares to get rich appeared first on The Motley Fool UK.

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Forget making a million with Bitcoin! I'd invest 500 a month in UK shares to get rich - Yahoo Finance UK